House and Senate Pass Competing Extensions This week, the Senate Commerce Committee passed the Federal Aviation Administration (FAA) Reauthorization Act of 2016. The nearly two-year authorization provides a $400 million increase in 2017 for the Airport Improvement Program (AIP) but does not lift the volume cap on the Passenger Facility Charge (PFC) program. The AIP and PFC are the main funding and financing mechanisms for airport and runway infrastructure projects. Prior to the committee’s consideration, AGC sent a letter supporting the increase in the AIP and asking for the Senate to consider an increase in the PFC as the legislative process moves forward.

House Budget Committee approved the week of March 14 a fiscal year 2017 budget resolution by a 20-16 vote. Republicans on the Budget Committee say their $3.9 trillion plan would reduce deficits by $7 trillion over 10 years, without increasing taxes, by cutting $6.5 trillion in government spending. The budget maintains the $1.07 trillion cap for discretionary spending in fiscal year 2017 that was set in last year’s bipartisan budget agreement – a level opposed by members of the House Freedom Caucus who want greater reductions in discretionary spending. Interestingly the Freedom Caucus opposition may lead to a continuing resolution that will result in a defense spending cut of more than $2 billion.

The week of March 14, the Senate Commerce Committee passed the Federal Aviation Administration (FAA) Reauthorization Act of 2016. The nearly two-year authorization provides a $400 million increase in 2017 for the Airport Improvement Program (AIP) but does not lift the volume cap on the Passenger Facility Charge (PFC) program. The AIP and PFC are the main funding and financing mechanisms for airport and runway infrastructure projects. Prior to the committee’s consideration, AGC sent a letter supporting the increase in the AIP and asking for the Senate to consider an increase in the PFC as the legislative process moves forward.

The Federal Highway Administration (FHWA) this week extended for one year a pilot program allowing state DOTs to include a geographic-based (local) hiring preference as a contract requirement on federally-assisted highway construction projects. The pilot was originally set to expire on March 6, 2015. When first proposed US DOT simultaneously proposed a new rule allowing the use of local hire requirements on a permanent basis. Thus far eight states have asked for and received permission to use local hire requirements as part of the FHWA pilot program. US DOT has indicated that it intends to approve and evaluate the results of these projects under the pilot program before deciding how to proceed with its proposed rule.

House Ways and Means Committee Chairman Kevin Brady (R-TX) addressed AGC’s Highway and Transportation Division today during AGC’s 97th Annual Convention in San Antonio, Texas. Chairman Brady’s committee is responsible for tax issues in the House including Highway Trust Fund motor fuel tax revenue. He said he was pleased that Congress was able to find sufficient revenue last year to fund the FAST Act for the next five years but he believes we need to get back to a user fee based revenue source. He reported that transportation committee chairman Bill Shuster (R-PA) is organizing a summit of the key House members and outside stakeholders to discuss the best route to a long term sustainable solution..

Encourage Redevelopment of $8 Billion of Federal Real Property This week, the House Transportation and Infrastructure Committee unanimously approved two AGC-supported bills that would encourage federal agencies to dispose of, consolidate, or redevelop at least $8 billion of excess or underutilized civilian federal real property. The Public Buildings Reform and Savings Act, H.R. 4487, and the Federal Assets Sale and Transfer Act, H.R. 4465, would:

AGC Calls for Change Order Oversight & Funding to Implement VA Reforms This week, AGC called on the House Appropriations Subcommittee for Military Construction and the Department of Veterans Affairs (VA) to conduct oversight into DOD construction agencies’ delay in executing and paying change orders on construction projects and need for adequate VA construction program funding to implement a host of recent reforms.

This week, Senate Commerce Committee Chairman John Thune (R-S.D.) indicated that he and House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA.) are close to agreement on a three-month extension of Federal Aviation Administration (FAA) programs. This extension will be necessary to allow for the House and Senate to work through the legislative process. The current authorization expires on March 31.

Talks of Extension Begin Talk about passing a short-term extension of the Aviation Innovation Reform and Reauthorization (AIRR) Act swirled around Capitol Hill this week. Although the Act passed out of committee in early February, the House has not made plans to consider the bill on the floor prior to its expiration on March 31.

Water Resources Development Act Consideration Underway As part of the Water Resources Reform and Development Act of 2014, the U.S. Army Corps of Engineers recently submitted an annual report to Congress that identifies about $13 billion worth of potential Civil Works Program projects for study, modification or construction. The report identifies 12 potential projects valued at about $3.663 billion with signed Chief of Engineers (COE) reports, 10 potential projects valued at about $2.980 billion with pending COE reports and 26 potential projects valued at $6.445 billion that state and local entities requested. Potential projects with signed COE reports have been fully vetted within USACE and are ready to enter the planning phase of construction. Projects recommended by state and local entities require further USACE study if authorized.